The New and Renewable Energy Authority (NREA) is preparing to pay the dues of eight companies that withdrew from the feed-in tariff projects within a few weeks.
Sources at the NREA said that the value of the letters of guarantee deposited by 22 companies for the NREA was repaid. The letters of guarantee were for lands on which solar energy plants were to be launched in Benban in Aswan. The value of the letters is estimated at $16.5m, with each company paying $750,000.
The sources told Daily News Egypt that the authority plans to repay the dues of eight companies for their participation in the costs of establishing roads in the locations of solar energy projects in Benban, worth EGP 1.3m, with each company paying EGP 165,000.
The companies include GDF, First Solar, Gestamp, Newgleben, Lekela Power, Solar Greket Benba, Egy Energy, and Building Energy.
The sources said that the Egyptian Electricity Transmission Company (EETC) has repaid the value of the letters of guarantee to implement the project for EGP 240m, with EGP 30.172m for each company.
The NREA paid the dues of 10 companies in the first week of January, including Italian Enel Green, Saudi Abdul Latif Jameel, and Egyptian Cairo Solar.
The government launched the feed-in tariff for renewable energy in 2014 in order to establish projects to produce electricity from solar and wind energy with the capacity of 4,300 MW, with investments worth $7bn. The capacity includes 2,300 MW for solar energy projects, including 2,300 MW for plants of less than 500 KW, and 200 MW for wind energy plants.
The sources explained that the number of companies which obtained the lands to implement the feed-in tariff projects on them is 56. About 22 companies and coalitions withdrew, whereas nine companies have signed the energy purchase agreement during the first phase of the feed-in tariff. Twenty-seven companies are taking part in the second phase.
Sources added that a large number of companies continue to work in the second phase of the feed-in tariff projects. They are also studying the feasibility of implementing projects. Once companies implement their financial close, purchase agreements will be signed according to the conditions and controls of the second phase of the feed-in tariff.